Market Commentary | April 21, 2026

In Through the Out Door

In the last two months’ market commentaries, we expressed optimism despite formidable headwinds and a general lack of macroeconomic clarity. This month, our perspective continues brighter with a marked pickup in M&A activity and growing market enthusiasm for REIT IPOs.

For some time now, we have exhibited a near evangelism in support of investment in shopping centers. Whitestone REIT (WSR) for more than 3 years has been the objet de désir, rejecting cash buyouts of $14.00, $15.00, and most recently $15.20/share. On April 9th, WSR finally capitulated in announcing they would be acquired by Ares Capital for $19.00 cash per share. WSR shares rose accordingly, but, importantly, the rest of the retail REIT sector was buoyed in speculation as to who would now become the takeout target.

In the opposite direction to being taken private, Healthpeak Properties (DOC), acknowledging strong investor appetites for senior housing real estate, on March 19th announced they would IPO their senior housing portfolio, Janus Living (JAN) at $20.00 per share. JAN has since traded as high as $26.70, while DOC (the largest holder of JAN units) shares have fallen 3%. We are actively analyzing Healthpeak to determine the magnitude of the mispriced investment opportunity.

In a similar pursuit of returns from senior housing, National Healthcare Properties (NHP) is expected to IPO later this week. NHP is a mix of senior housing and medical office real estate. We’re sure NHP was encouraged by the popular reception of the JAN IPO, but we realized investors could get in on the action prior to the Initial Public Offering. NHPAP and NHPBP are preferred stock issues of NHP that have traded on the NASDAQ for years. Until the IPO announcement, these preferred issues changed hands below $19.00 (a 25% discount to their par value) and offered yields in the 9.0% to 10% range. News of the IPO has brought share prices up about 10%, but they are still discounted relative to their preferred peers.

We are indifferent as to whether profits are realized from being taken private or going public. Either way, we work continuously to identify discounts.

Opportunities abound.

Notes and Disclosure

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